Why does fed want inflation

BlackRock President Rob Kapito claimed that an “entitled generation” will be shocked by how upcoming shortages in labor and raw materials will remove normal items from shelves. Kapito, 65, stated that recent inflation is going to keep having a significant impact on the global economy and will push an entire generation to deal with a wave of shortages, according to Bloomberg. “For the first time, this generation is going to go into a store and not be able to get what they want,” Kapito told the Texas Independent Producers and Royalty Owners Association at a conference Tuesday. “We have a very entitled generation that has never had to sacrifice.” BlackRock’s president warned of inflation’s dramatic effects, with an “entitled generation” now learning what it means to suffer from shortages https://t.co/HaybYqLAqE — Bloomberg (@business) March 30, 2022 Kapito described the economic situation as having “scarcity inflation” caused by the shortage of workers and … [Read more...] about ‘Put On Your Seat Belts’: BlackRock President Warns ‘Entitled Generation’ Of Shortages Due To Inflation

With inflation breaking records, gas prices pushing $10 per gallon and the border exploding with hundreds of thousands of illegal immigrants, President Joe Biden decided to issue an executive order to “enhance protections for transgender children and take steps to ban conversion therapy as efforts continue in Texas and other states to restrict gender-affirming medical care.” “Gender affirming medical care” is a woke term that includes chemical castration and puberty blockers, as well as hormone injections from the opposite sex. It also includes actual castration and mastectomies that are not medically necessary. These irreversible and dangerous medical actions are more accurately described as “gender destroying.” They have nothing to do with care. There’s no way to know what the president means by “conversion therapy” in this this context, but it is clearly an effort prohibit any restrictions by states like Texas against parents who want to experiment on their own children with … [Read more...] about SYLVESTER: Inflation, Gas Prices, Drag Queens And Biden’s Sinking Poll Numbers

Share to Twitter Share to Linkedin Stephen Curry has no parallel. There is nobody like him in today’s pace-and-space era. If you teleported him into the 1980s or 90s, everyone in the NBA would think aliens had infiltrated Earth. His incomparable range, glitzy ball-handling, and spellbinding scoring prowess would not be of human form. Even in the modern league, the one he’s largely responsible for shifting, Curry is not replicable. Many players can mimic his style, or believe they have the same DNA and shooting touch to warrant a similar shot diet. But there is only one. And there are no duplicates of the greatest winner and leader of the last 10 years. Before 2014, nobody had struck the perfect balance between off-the-dribble wizardry and selfless off-ball principles – certainly not to the extent of being the focal point of the deadliest motion offense in history. In 75 years of the league’s existence, Curry is the only player – let alone … [Read more...] about Where Does Stephen Curry Rank All-Time After Fourth NBA Championship?

Share to Twitter Share to Linkedin Interest Rates On The Rise With interest rates on the move, due to the Fed’s latest rate hike , there are winners and losers galore. One of the areas we haven’t paid much attention to for years is our savings accounts. For most of us, we have been beaten into submission, simply accepting the laughable interest we’ve been getting. If you’ve been with a traditional bank the savings interest rate has been, well, insulting. Some banks have been paying as low as 0.1% on some of their savings accounts. How Your Savings Account May Change What has changed is with the Fed’s announcement of a .25% rate increase, banks will have to adjust to keep up. Of course, lending rates will increase as well, but the big winner here is your cash savings rates. When the Fed increases their rates, banks in lockstep will increase what they are paying to park money at their bank, generally speaking. Essentially, it is exactly the outcome the … [Read more...] about What Rising Interest Rates Mean For Your Savings Accounts

Share to Twitter Share to Linkedin Stocks continued their descent last week, with the S&P 500 now well into bear market territory at -23% from the high. While most define bear markets as a decline of 20% from the high, some pullbacks just kiss that level or don’t result in widespread carnage across all sectors. What we saw last week certainly qualifies the current situation as a “real” bear market. First, the S&P 500 was down almost 11% during the previous two weeks. Secondly, all sectors participated in the sell-off. Whether it is “profit-taking” or “selling what you can rather than what you want to,” this indiscriminate liquidation is the hallmark of a bear market. For example, energy stocks, which had been almost impervious to the market weakness this year, declined 17% last week! That still leaves energy up 31% and the only sector in the green year-to-date. Utilities, which were only slightly lower before last week, underperformed the market over … [Read more...] about Welcome To The Real Bear Market

(Representative image: Reuters) Dear Reader, A whiff of change wafted through the markets this week. The focus shifted from worrying over inflation to concerns about growth. The advance Purchasing Managers Indices (PMIs) for the current month for the US and the Eurozone showed slowing growth, but while they indicated inflation was cooling in the US, it continued to rise relentlessly in the Eurozone. They also reflected stalling demand and falling business confidence. The New York Fed’s economic model predicted an 80 percent chance of a hard landing for the US. UK consumer confidence hit a record low. In China, housing starts and property transactions reached extreme lows. The worries over an imminent recession in the US, the UK and the Eurozone sent commodity prices sharply lower. Copper prices have moved down dramatically. My colleague Ravi Ananthanarayanan wrote about the dark clouds hovering over steel . Crude oil prices too fell. That dissipated some of the … [Read more...] about MC Pro Weekender | A new narrative

Wall Street, New York City (File image: Reuters) Wall Street's main indices soared on Friday in a broad rally as signs of slowing economic growth and a recent pullback in commodity prices tempered expectations for the Federal Reserve's rate-hike plans. The S&P 500 rose over 3% for its biggest one-day percentage rise since May 2020. All 11 of the benchmark index's sectors ended at least 1.5% higher. Stocks rebounded this week as financial markets have been roiled over worries that rapid rate hikes by the Fed to rein in 40-year-high inflation could cause a recession. Still, investors have been gauging when the market might hit its bottom after the benchmark S&P 500 earlier this month recorded a 20% drop from its January closing peak, confirming the common definition of a bear market. "Some of the moves, the sellers just get exhausted so you don’t have as much capital moving out," said Shawn Cruz, head trading strategist at TD Ameritrade. "This might be a … [Read more...] about Wall Street mints big gains to end a strong week

Wall Street's main indexes rose over 1% on Friday as signs of slowing economic growth and falling commodity prices tempered expectations over how high the Federal Reserve will raise interest rates to rein in inflation. Global financial markets have been roiled this month on worries that rapid rate hikes by major central banks could cause a recession, with the benchmark S&P 500 (.SPX) confirming a bear market last week as it recorded a 20% drop from its January closing peak. The three main indexes on Friday looked set to notch their first weekly gain in four, boosted by megacap growth stocks and defensive sectors such as healthcare and utilities seen as safer bets during times of economic uncertainty. "Conversations about the U.S. economy likely slowing which could lessen the hawkishness of the Fed, combined with lower commodity prices and bond yields - these are reasons investors are mentioning to justify why we could experience a near-term bounce," said Sam Stovall, … [Read more...] about Wall Street rallies as traders dial back rate-hike bets

Share to Twitter Share to Linkedin Bitcoin bank Custodia today sued the Federal Reserve Board of Governors and the Federal Reserve Bank of Kansas City charging they have “unlawfully” delayed for 19 months acting on its application for a master account with the Federal Reserve. The bank, chartered in Wyoming under a crypto-friendly statute passed in 2019 allowing for “special purpose depository institutions,’’ says the master account would reduce its costs and is “vital” to its core mission of providing a bridge between digital assets and the U.S. dollar system. According to the suit, the Federal Reserve has a legal obligation to act within a year and states on its own paperwork that it ordinarily takes just five to seven days to act on a master account application. Custodia’s suit alleges the Kansas City Fed’s processing of its application was moving along until the Spring of 2021, when the main Federal Reserve got involved. The suit seeks to force the … [Read more...] about Bitcoin Bank Custodia Sues Federal Reserve, Demanding Decision On Master Account

Share to Twitter Share to Linkedin The Oklahoma mogul spoke to Forbes about how he's protecting his investments ahead of the “near certainty” of a recession. With the S&P 500 entering a bear market last week , many of America’s billionaires are convinced that a recession is in the offing . George Kaiser , one of the wealthiest people in Oklahoma with an estimated $9.5 billion fortune, is one of them. Kaiser, 79, told Forbes that a “recession seems a near certainty” and that he expects the economy to tip into a downturn in the first two quarters of 2023, with a prolonged dip in the stock market. The timing of the market bottoming out—the point at which the stock market hits a low and begins rising again—is still far off, according to Kaiser. “Historic analogies would suggest a 35% total drop from the peak, but that history is largely irrelevant since so many of the factors are unique,” he said. Kaiser, who has appeared on the Forbes … [Read more...] about Oil And Banking Billionaire George Kaiser Says Market Bottom Is Still Far Off